Perfect cryptocurrency security is never easy. Many cryptocurrency wallet manufacturers in the world claim that it is perfectly safe to use only their own wallets, but this is far from the truth. So, let's learn about safe cryptocurrency wallets, and first, let's look at what a cryptocurrency wallet is.
What is a cryptocurrency wallet?
In everyday life, a 'wallet' is an object in which money, credit cards, and identification cards are put and carried. So, when we say 'cryptocurrency wallet', we often think of something like a real wallet that stores cryptocurrency.
Cryptocurrencies such as Bitcoin or Ethereum seem to be in the wallet. However, there is no cryptocurrency inside the cryptocurrency wallet. A cryptocurrency wallet is just a tool for storing and managing private keys used to create and sign transaction data recorded on a blockchain distributed ledger.
Then, where is the cryptocurrency, not in the wallet? It is in a blockchain shared by all participants. My assets, the UTXO sum of addresses linked to my key in case of Bitcoin, the balance of accounts linked to my key in case of Ethereum, my assets are contained in the blockchain.
If you lose the key stored in your wallet, the cryptocurrency does not disappear, but it becomes impossible to prove ownership of your assets. That's why key management is the most important thing in cryptocurrency asset management.
A cryptocurrency wallet is a tool for managing that key.
Cryptocurrency transaction proof and encryption technology
Cryptocurrency transactions, that is, all transactions, are recognized as valid only when they are signed using the 'public key cryptography' method. Public key cryptography is an encryption process consisting of a pair of a private key and a public key corresponding to the private key.
In the case of cryptocurrency transactions, the fact that the subject of the transaction is certain is verified by verifying the transaction signed with the private key with the public key.
A private key is also called a 'private key' because it is never disclosed to others and must be managed secretly. If my private key, which usually uses 256-bit random numbers, is exposed to the outside, someone other than myself can sign a valid signature pretending to be me. In other words, I can take all my assets and throw them away. Therefore, the primary purpose of a cryptocurrency wallet is to safely manage private keys.
How to choose crypto currency wallet : Key features to consider when choosing a cryptocurrency wallet
You should choose a cryptocurrency wallet that meets your personal and investment needs. And yet, it should offer great features, an uncomplicated interface, and strong security.
Check out the main features and functions that a cryptocurrency wallet software should have in the next section.
The first major point is wallet user authentication. Remember that cryptocurrencies are at a relatively early stage in their evolution. Therefore, many cyber-criminals are looking for ways to steal not only from individual users, but also from reputable cryptocurrency brokers and exchanges. These factors make most wallet apps vulnerable to various security breaches due to the popularity and rising price of many cryptocurrencies.
QR code
You should choose a cryptocurrency wallet app that offers the fastest transactions and makes transactions easier and safer with its QR code scanner feature.
If your cryptocurrency wallet software includes a QR code scanner, any client can simultaneously scan the address with the public key. So you can perform enhanced cryptocurrency transfers with just one click on your smartphone.
Instead of having to write down all the long characters of the public key, app users can scan the QR code. Once this is done and the information is retrieved through the scanner, you can safely send and receive crypto assets of your choice.
various cryptocurrencies
Trustworthy wallets should offer as many cryptocurrencies as possible.
Popular cryptocurrency wallets are constantly adding new coins and tokens due to growing demand. This usually happens during a bull market as all investors are actively looking for new projects to get the most profits possible in a short period of time.
Moreover, many of these new projects will thrive and generate stable income for a long time, and on the other hand, they add new assets as they are also suitable for those looking for so-called 'pump and dump' tokens. The value of these mostly obsolete assets fluctuates over a short period of time and shows high returns. Once the 'hype' is over, these tokens lose their value, and some exchanges take this into account and eventually delist them.
Another reason to store a lot of coins in one wallet is that not all investors use multiple wallets to hold their cryptocurrencies and do not want to diversify their portfolios.
Push Alarm
All modern cryptocurrency wallets should have super-fast push notifications. Notifications are an important feature in the digital age to keep customers informed of cryptocurrency transactions at any time. Cryptocurrency wallet users should always check the price of their portfolio regardless of the success or failure of any transaction or other process.
This feature allows you to receive real-time alerts on all transactions in your account.
real-time conversion rate
Cryptocurrency wallets must not be able to calculate transaction fees based on rapidly changing conversion rates.
This is because cryptocurrency wallet apps allow you to transact money in different ways:
- the same digital currency.
- alternative digital currencies.
- both digital and fiat currencies.
To do so, it must provide real-time information about current currency values in real time.
Efficient and fast blockchain solution
The blockchain technology on which crypto wallets are based is paramount. The wallet allows all users to send and receive digital currency in the fastest, fully encrypted way. As already mentioned, all customers can view their available balance along with their full transaction history. This is because all completed transactions are sent to the blockchain network and cannot be removed, hidden or manipulated. This is a great testament to all successful trades.
wallet backup
Developers should allow wallet backups so that customers can protect their funds from computer or software failures.
Creating a backup on your computer storage or SD card would also help, but not everyone finds this efficient enough.
Crypto wallet developers should seriously consider integrating secure online storage tools like Dropbox or Google Drive into their wallets.
However, you should always remember that if you are storing sensitive information, such as the private keys of your crypto wallet, the possibility of misuse should be minimized. So remember to write down important information several times on a piece of paper and keep it in a safe place.
payment gateway
If a cryptocurrency wallet has an integrated payment gateway, it allows consumers to easily buy and sell their digital assets.
Cryptocurrency payment gateways allow multiple merchants to accept payments in Bitcoin or other cryptocurrencies. Most of these payment gateways today support the buying and selling of various altcoins, including Ethereum, Litecoin, and Dogecoin.
automatic logout
A strong crypto wallet should be complex and have a variety of features like the ones mentioned in this article.
Success also depends on the ability to log out automatically. Why is this important? This is because it significantly reduces the chances of an outsider gaining access to your account. The wallet should be logged out if not used for a certain period of time or after the app is closed.
Ability to operate multiple operating systems
All cryptocurrency developers need to build a variety of operating systems to appeal to as many potential users as possible. To do this, you need to develop cross-platform mobile apps, as they improve efficiency and give users more options. This approach is also likely to lead to shorter development times, lower costs, faster implementation, and ongoing manageability.
Types of crypto wallets :coin wallet types and features
Types of Cryptocurrency Wallets
Cryptocurrency wallets are largely divided into 'hot wallets' and 'cold wallets'.
So what is the difference between hot wallets and cold wallets ?
Hot wallets are so named because they are connected to mobile devices, desktops and internet browsers most of the time and can be accessed by internet.
A 'cold wallet' includes even a paper wallet. It is a hardware wallet, different from a hot wallet, and is connected to the internet only when the wallet is in use.
* Recent regulatory guidelines focus on distinguishing between "custodial" and "non-custodial" wallets.
A wallet in which funds are managed by a third party is a 'custodial type' (exchange wallet, etc.), and a type in which users independently control their funds is a 'non-custodial type wallet' (meta mask wallet).
Types of Hot Wallets:
1. Web wallet :
It is a wallet that is accessed through an internet browser, and is provided in the form of a browser (mostly Chrome) extension program or website.
Because it is always connected to the Internet, it is the most vulnerable in security, but it has the ability to transfer coins immediately, so it can be said to be the most practical.
a. Coinbase :
It is the largest and most popular cryptocurrency exchange in the United States and one of the largest exchanges in the world. It is user-friendly and can be linked to your bank account, making it easy to deposit and withdraw funds.
Although it does not support various cryptocurrencies, it supports major cryptocurrencies such as Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.
b. Blockchain:
Blockchain, named after cryptocurrency technology, is also a web wallet. It is popular because it is intuitive and easy to use.
However, since it is stored on the server within the company, there is a risk that it may be exposed to a third party. It has received good reviews from users based on various functions and convenience. Indeed, it is well-known as a specimen of a safe and secure web for Bitcoin.
c. Freewallet:
Supports mobile devices and supports over 30 coins.
Security is enhanced through pin-code and two-factor authentication. The biggest advantage is that you can transfer funds between accounts for free.
It is also possible to purchase and exchange cryptocurrency. You can buy coins by depositing money with a credit card. Since the address is filled in, it is convenient because there is no need to rewrite it.
2. Mobile Wallet:
a) BRD :
One of many Bitcoin wallets for iOS. Since it supports almost all ERC-20 tokens such as Bitcoin, Bitcoin Cash, and Ethereum, you will hardly feel any inconvenience in trading. Not only this, you can manage your private key yourself, so if you pay a little attention, you can safely use it. I need to be careful because I am responsible for security, funds, management, etc.
b) Infinito Wallet :
Supports Bitcoin, all EOS tokens, ERC-20 tokens, and NEP-5 protocol tokens. Since it is a mobile wallet, it may be vulnerable to hacking attacks.
However, the biggest advantage is that you can turn off the Internet on your device and switch to cold storage.
We don't recommend it if you frequently use your phone to browse the web. However, it can be the safest if used separately for wallet purposes.
Security is enhanced through 12 phrases, and it is user-friendly as it supports modern, clean design and fast transactions. In addition, it supports various languages, transaction fees are paid by miners, and there are no wallet fees.
c) Samourai Wallet
It is a bitcoin-only wallet that does not support altcoins, and is currently only available for Android. It supports alternative addresses and strengthens security by using STONEWALL technology.
This technology helps with anonymity, as it protects metadata that can be used by third parties to figure it out.
There are various levels of protection such as phrase, PIN, and key generation phrase.
d) Green Address
It is an IOS bitcoin wallet suitable for use on Apple devices. It is safe from theft, cloning and similar threats.
Not user friendly or intuitive. Instead, it is used a lot because of the additional features provided by the wallet, and since it is open source, you can check the code used in detail. So, when a problem arises, developers can notice it and see a quick fix.
It is free to install and use, account management and creation. However, costs are incurred during transactions, and commissions are not constant. Fees vary according to demand within the network, creating constant volatility.
3. Desktop Wallet :
Similar to the mobile wallet, the desktop wallet can be changed to hot or cold storage depending on whether or not there is an internet connection. If you are using a small laptop for cryptocurrency trading, it is a good idea to keep it offline at all times except during trading hours.
It is more inconvenient than the web, but it is more convenient than a cold wallet in that you can connect to Wi-Fi at any time.
It can be defended with a variety of additional security software that can protect your wallet and funds, such as anti-virus and anti-malware software, firewalls, and VPNs.
Electrum:
It can be used on 3 systems (Windows, Mac, Linux) and is known as a safe Bitcoin-only wallet. The program capacity is light and the processing speed is fast.
It can be unfamiliar to first-time users.
It doesn't provide any information or tips on features and how to use it, so you'll have to do your own research.
Because it supports only Bitcoin, it is not suitable for those who want to configure coins in various ways. It's worth using if you want a function that focuses only on the purpose without superfluity.
4. Staking Wallet:
Moonstake:
It supports both web and mobile, and can store about 2,000 cryptographic assets. The "private key" and "password" are encrypted and stored on the user's local device (computer or mobile phone), and the digital assets remain on the user's existing device, so there is no need to worry about your account being hacked on the platform. does not exist.
Staking refers to holding funds to receive rewards. It's not just about keeping it, it's about raising interest income. It is a system that receives compensation according to the contribution after delegating the coin owned by the staking information. In the middle, if I need it, I can move it right away at any time.
Types of Cold Wallet :what is an example of cold wallet ?
A cold wallet is a type of cryptocurrency wallet that can store a private key (private key) that can prove ownership of a cryptocurrency.
Cold wallets are characterized by not being connected to the Internet, and are also called hardware wallets or hard wallets because they usually take the form of :
hardware such as USB or cards.
What should i use ? hot wallet or cold wallet ?
When investing in cryptocurrency, you cannot avoid using an exchange.
However, after investing to some extent, the list of tokens and coins to be held for a long time is organized, and safe storage of them is also considered.
Of course, if your main purpose is trading based on short-term market price changes, you should definitely use a hot wallet.
However, if you have invested some assets in cryptocurrency, you should think about using a cold wallet as well as a hot wallet.
There is no right answer, and it is most desirable to decide how to store cryptocurrency by considering your investment propensity and amount of holdings.
What are the best crypto currencies wallets
OKX – Massive Exchange with Powerful Features
OKEx is a powerful coin exchange that offers its own proprietary wallet. This coin exchange currently supports trading of over 350 different cryptocurrencies and boasts the second largest trading volume globally after Binance.
OKEx's fee is 0.08% for maker fee and 0.10% for taker fee. This is very cheap compared to the scale and features this exchange has.
OKX provides its own wallet called OKX Wallet, which is a non-custodial wallet. Therefore, the user of this wallet is fully responsible for the security of the wallet, and as such, it supports strong security.
Since this wallet is a soft wallet, anyone can easily download and use it. Users can store their coins in this wallet, and transaction fees may be reduced by up to 0.06%, especially depending on the amount of coins held by OKB, which is its own coin.
Crypto.com – The Best Wallet for Accessing Various Coins
Crypto.com is a leading cryptocurrency exchange offering 250 cryptocurrencies.
A variety of features are loaded along with various trading options, giving users versatility in formulating their investment strategies.
Although Crypto it is an overseas exchange, the Telegram room operated by Korean operators .Therefore, it is easy to access and you can easily obtain useful information.
Crypto.com has many features by default. Investment, savings, and trading are possible, while lending and cryptocurrency personal wallet functions are also provided.
Therefore, anyone can create a custodial wallet by installing a basic subscription and a basic app, and at the same time connect a non-custodial wallet separately. When using a custodial wallet, there is the convenience that Crypto.com takes full responsibility for security, and when choosing a non-custodial wallet, stronger security features are provided, but on the other hand, only the user is solely responsible for the security. It's possible.
Binance – Best wallet for trading
Binance is a major player in cryptocurrency and blockchain technology.
Binance not only offers the best altcoin exchange in terms of trading volume, but also holds BNB Coin, a multi-billion dollar cryptocurrency asset.
Furthermore, Binance even has its own network chain hosting thousands of decentralized tokens. As such, Binance is the best Bitcoin e-wallet for those who want both storage and trading services. It is also very easy to create a Bitcoin wallet.
Many investors can use the Binance Web Wallet to store their tokens. You can also connect your web wallet to the Binance app to track your investments anytime, anywhere.Both of these options run in the form of custody wallets, in which case Binance will protect your private keys on your behalf.
There is another option. It is to download the Trust Wallet supported by Binance to your mobile phone. In this way, you can view your Bitcoin wallet at any time through your mobile phone.
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